SINGAPORE (Feb 14): Raffles Education Corporation reported 1H18 losses widened to $7.3 million from $5.6 million a year ago on lower operating income, higher finance costs, and currency translation differences.
Revenue for the half year fell 1% to $48.8 million from $49.2 million.
Meanwhile, other operating income declined 45% over 1H to $2.7 million from $4.9 million previously due to lower foreign exchange (forex) gains as compared to a year ago.
Finance costs grew 8% to $6.6 million from $6.1 million in 1H17 due to an increase in cost of borrowings as well as higher borrowings.
Gain on currency translation differences arising from the consolidation of foreign operations fell 88% to $1.5 million compared to $12.7 million a year ago.
In its outlook, Raffles Education says it continues to be impacted by the challenging global education environment, currency volatility and increasing interest rates.
While operations are also expected to be affected adversely by increasing competition, higher manpower costs, as well as a more stringent regulatory environment, Raffles Education says it intends to seek opportunities in new territories moving forward.
Shares in Raffles Education closed 2 cents lower at 24 cents on Wednesday.
